Red Star Mortgage's real estate financing for small business 2019

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SBA FINANCING FOR OWNER OCCUPIED SMALL BUSINESS

Small Business Lending Division 


Who We Are;

Direct non-bank correspondent lender specializing in the SBA 7(a) Program

Offering business loans secured by commercial real estate throughout the continental U.S. 

“Preferred Lender” designation with the Small Business Administration

Top 10 ranking of SBA 7(a) affiliated lenders nationwide. 


Use of proceeds

Owner-user commercial real estate acquisition

Debt refinance (terming out loans, lines, credit cards, mortgages)

Construction and renovations

Business acquisition / partner buyout

Purchase of machinery & equipment, furniture and fixtures

Working capital / Expansion / Start-up


Loan terms

Loan Size   $250M - $2.0MM

Collateral  1st lien on commercial real estate & 1st available on other assets

Prepayment   Three years (5, 3 and 1%)

Rate  Wall Street Journal Prime + Spread (typically 2.5% - 2.75%)   

Maturity    Up to 25 years, fully amortizing

LTV  Up to 130% - Higher LTVs for medical professionals and general office space

SBA Fee  TBD 

Industries we finance

Professional offices  Drycleaners  Daycare centers

Physicians and veterinarians  Funeral homes Fitness centers

Office condos  Auto repair Hotels & motels (existing only)

Warehouse / Industrial  New & used auto sales Bed & Breakfasts

Gas stations / C-stores  Car washes Restaurants

Assisted living  Nursing homes Liquor stores

Recreational  Trucking terminals And more…


Why borrowers come to us

  • Higher Loan-to-Value required – up to 90% special use / 120% multi-purpose / 130% medical
  • Longer amortization desired for cash flow purposes – up to 25 years 
  • Need to close a  loan quickly – our loan committee meets every day
  • Special-use or unique property type – maybe a bowling alley, B&B or garden center
  • Expanding outside of local geography – need lender with national presence
  • Don’t want to move banking relationship – we’re purely transactional and don’t want deposits or lines of credit
  • Credit preventing  bankable solution – tighter cash flow, trends off, leverage, storied history or borrower
  • Structure not available elsewhere (i.e. construction-to-perm, equipment financing,  terming out line, etc)
  • Do not want loan covenants – just want to pay bills, be left alone and not worry about  managing the bottom line
  • Diversification of  credit sources – spreading eggs into difference baskets for protection and borrowing capacity


Items needed for pre-qualification (forms available - please call)

Purchase Agreement (if acquisition)  Business tax returns for 3 years

Current P&L and Balance Sheet Business debt schedule*

Borrower personal financial statement*   Credit report authorization* or current report

Borrower most current personal tax return Brief summary of the transaction / collateral


Download the preliminary forms needed to apply below